One of the biggest goals most people have on reaching retirement is to travel a lot more.
According to COTA’s 2023 State of the Older Nation report, 67 percent of people intend to go on a holiday in the next 12 months. This number jumps up to 88 percent for those whose incomes are more than $100,000.
Holidays are not cheap and 54 percent of those who said they weren’t intending to take an interstate or overseas holiday cited the expense.
But there are ways to get more holiday for your money so you can enjoy your increased leisure time. Here’s a few ideas to travel in retirement with a budget in mind:
9 Tips to Travel Cheap in Retirement
Holidays are exciting and 74 percent of over 55s who responded to the Australian Seniors 2022 Travel Trends Report say that they are actively making travel plans.
And 79% of those are looking at budget-friendly destinations as well as being ready to dip into their savings or ‘spending the kids’ inheritance’ to fund their holidays.
Europe ranked highest on the must-see list with 29 percent of people nominating it as their dream destination. Ranking at 23 percent were those who want to explore Australia first.
So, what are some ways of satisfying the wanderlust without breaking the bank?
1. Use the Currency Exchange to Your Benefit
If Europe or the Americas are too expensive, why not consider places where the Aussie dollar goes further?
According to Forbes countries including Japan, South Korea, South Africa and New Zealand are destinations where you’re likely to get more bang for your buck.
Keep an eye on currency exchange rates for ideas on your next destination and don’t be afraid to think outside of the box. Sri Lanka, for instance, is tipped to be the number one destination for Australians to visit in 2024.
2. Use Time to Your Advantage
Use the luxury of not working full time to enjoy a holiday. If you’re able to travel on two weeks’ notice, why not take advantage of holiday websites offering last minute deals? These could save you hundreds of dollars on popular destinations.
Spending time on travel and airline comparison sites are a terrific way to do your research and prepare your holiday budget.
3. Travel Outside of Peak Season
Did you know you could save between 40 to 50 percent off accommodation by travelling off season? Going off-peak sees you avoid crowds and enjoy more of the local experience. Researching and planning your itinerary in advance means you can take advantage of early bird discounts, off-peak rates and exceptional deals.
Don’t forget public transport at your destination. Utilise trains, buses, and trams to move between cities and regions economically. If eligible, consider buying multi-ride passes or seniors’ concessions for further savings.
Using public transport outside working commuter times may also save you money.
4. Make the Most of Discounts
Make sure you inquire about senior discounts at accommodation, attractions, restaurants, and transportation services. Many places offer reduced rates for retirees, so carry your identification to get those benefits.
Have you ever considered traveling by train? Queensland pension card holders, for instance, are entitled to free Queensland Rail long-distance fares that includes more than 60 destinations including Cairns, Longreach, Charleville, and Rockhampton.
5. See What’s Free
Local and international destinations have plenty of natural wonders and cultural experiences that won’t cost a cent. Many world class museums and galleries, such as the Getty Museum in Los Angeles or the National Gallery in London, offer free entry.
Take the time to enjoy your holiday destination by taking walks through national parks and botanical gardens. Local community events are another way to add more value to your holiday.
6. Consider Accommodation Alternatives
Instead of splurging on expensive hotels, one way to enjoy a different holiday experience is to opt for more affordable lodging options. Depending on your destination, home-sharing platforms like Airbnb or budget-friendly motels, hostels, or caravan parks, can help you enjoy a sense of community and share stories with fellow travellers.
7. Cook Your Own Meals
Eating out can quickly bite into your travel budget. Embrace self-catering options and prepare your meals using fresh produce from markets. Not only will you save money, but you’ll also get a taste of diverse local culinary delights.
8. Join Travel Clubs and Organisations
Several travel clubs and organisations offer exclusive deals and discounts to their members. Consider joining these groups to access cheaper tours, accommodation, and activities. Some of these groups also offer group travel options which means you can afford to be more adventurous about your travel destinations.
9. Avoid transaction fees
Chat to your bank about the options they offer for international travellers. Some banks already offer fee-free overseas ATM withdrawals on debit cards. Others may offer a special prepaid travel card that locks in the exchange rate as well as featuring no transaction fees.
Also, be sure to let the bank know that you’re going to be away and the destination you’re travelling to. This will ensure that your overseas spending isn’t identified as potentially fraudulent, and your cards cancelled.
How Much Should You Budget to Travel in Retirement?
It is a generally accepted rule of thumb that you can withdraw between three to five percent of your retirement nest egg each year for your everyday living expenses without running out of funds.
With that figure in mind, it’s time to work out your household budget, including how much you can spare for holidays.
Plan Out Your Travel Allowance
Depending on the level of your household expenses, you might consider putting aside anywhere between five to 20 percent of your budget for that holiday.
Speaking of nest eggs – there’s no need to put all your vacations in one basket. Think about adding some shorter local mini breaks in addition to taking one big overseas holiday.
Plan Out Travel Destinations and Potential Costs
Once you know what your overall budget for holidays is, now comes the fun part – planning that vacation.
While flights and accommodation costs can be worked out ahead of time, experienced travellers know that is not the end of the expenditure. Money for meals, transfers, activities, and souvenirs also needs to be factored in.
These things can be difficult to guess in advance especially if you’re planning to go to a new destination. The good news is that there are online calculators that will help work that out for you.
Budget Friendly Retirement Travel Options
As you can see, there are ways to budget effectively and make the most of your money while satisfying your wanderlust.
Let’s look at some of the most popular forms of travel that offer you more experience and better value.
A Cruise
There are many reasons why cruises are a popular choice amongst the over 50s. You only unpack once, and all the destinations come to you. Furthermore, meals are included in the price, along with your entertainment which means all you need worry about is your spending money.
According to the Australian Seniors 2022 Travel Trends report, 90 percent of respondents agreed that cruising was a very sociable form of travelling.
House Sitting
If you have the time to immerse yourself in a location, then house sitting is a wonderful way to really experience an area while on a budget. Not only is your accommodation covered, but you may also get paid if you’re required to care for pets and maintain the gardens.
There are quite a few companies that act as agents for house sitters online, so if this sort of immersive travel appeals, then it’s well worth the time to explore your options.
Volunteer Tourism
Volunteer tourism may help you go off the beaten track and do some good at the same time. This form of tourism has created controversy in recent years for exploitation of vulnerable children and may end up doing long-term harm.
If you are considering volunteer tourism, be sure to research the organisers thoroughly and consider the contribution you could realistically make in such a brief time.
Package Tours
Package tours offer the same advantages as taking a cruise – locked in costs for all the essentials, the opportunity to meet new people and explore unfamiliar places. Package tours ensure you see all the highlights as well as some of the interesting locations that only the locals know.
Explore by GemLife
Homeowners at GemLife over-50s lifestyle resorts can all enjoy the best Australia has to offer thanks to the Explore by GemLife program. Exclusive to residents, GemLife offers a fleet of upgraded Jayco Conquest DX motorhomes for rates well below the market. There’s even a pet-friendly motorhome for those who love to travel with their canine family members. Find out more at www.gemlife.com.au/explore/
Explore the GemLife Difference
Feel like you’re on holidays every day. GemLife over-50s lifestyle resorts which are found in the most desirable retirement locations around Australia are designed for active over 50s.
Each resort features luxury resort-style facilities including a relaxing summer house with outdoor pool, barbecues and sunlounges and an exclusive Country Club with sporting, leisure and entertainment facilities.
For more information, reach out to our specialist team or request an info pack.